Equities-in-general have gone nowhere for the past decade (and have lost 30% or more when their prices are adjusted for inflation), and are in a Bear Market, with no end realistically in sight.
And most Bonds and CD’s provide niggardly or negative returns after adjusting for Real Inflation.
And Many Commodities have not been consistently Appreciating lately.
Deepcaster has long been, and still is, an advocate of Gold and Silver, The Ultimate Monetary Metals, as our #1 and #2 Selections as the best Fortress Assets for Profit and Protection.
Indeed, Deepcaster has two open ‘Buy’ Recommendations on a particular form of these Metals. And, as Regular Readers know, Deepcaster has for weeks maintained these open ‘Buy’ Positions notwithstanding ongoing Gold and Silver Price Suppression Attempts by the Fed-led Cartel* of Central Bankers.
Though the Cartel has been weakened recently, it still has the Capacity to manipulate prices (and not just in the Precious Metals market either).
But if one can “Buy the Dips” and use Deepcaster’s Strategy specifically designed to Profit in spite of Cartel* Intervention (see “Avoiding Wealth Confiscation…With Profit!” (2/05/10) in the ‘Articles by Deepcaster’ Cache at www.deepcaster.com), one can Profit, and also achieve the Protection which Gold and Silver provide.
*We encourage those who doubt the scope and power of Overt and Covert Interventions by a Fed-led Cartel of Key Central Bankers and Favored Financial Institutions to read Deepcaster’s December, 2009, Special Alert containing a summary overview of Intervention entitled “Forecasts and December, 2009 Special Alert: Profiting From The Cartel’s Dark Interventions - III” and Deepcaster’s July, 2010 Letter entitled "Profit from a Weakening Cartel; Buy Reco; Forecasts: Gold, Silver, Equities, Crude Oil, U.S. Dollar & U.S. T-Notes & T-Bonds" in the ‘Alerts Cache’ and ‘Latest Letter’ Cache at www.deepcaster.com. Also consider the substantial evidence collected by the Gold AntiTrust Action Committee at www.gata.org, including testimony before the CFTC, for information on precious metals price manipulation. Virtually all of the evidence for Intervention has been gleaned from publicly available records. Deepcaster’s profitable recommendations displayed at www.deepcaster.com have been facilitated by attention to these “Interventionals.” Attention to The Interventionals facilitated Deepcaster’s recommending five short positions prior to the Fall, 2008 Market Crash all of which were subsequently liquidated profitably.
But making Significant Real (i.e. after adjusting for inflation) Profit without Great Risk (and in spite of Real U.S. CPI at 8.37% per Shadowstats.com) is a Daunting Challenge these days.
Yet it is possible if one is willing to take reasonable risks!
Before revealing our #3 Selection for Profit and Protection, we provide a bit of background to explain why it is #3. Thus we address the challenges, beginning with the challenge of Inflation. To do this we must review the Real Numbers. Shadowstats.com calculates the Real Numbers for the U.S. the way they were calculated in the 1980’s and 1990’s, before Systematic Data Distortion and Cartel Market Interventions began in earnest.
Official Numbers vs.Real Numbers (per Shadowstats.com)
Annual U.S. Consumer Price Inflation reported July 16, 2010
1.05% / 8.37% (annualized June 2010 Rate)
U.S. Unemployment reported July 2, 2010
9.5% / 21.6%
U.S. GDP Annual Growth/Decline reported June 25, 2010
2.42% / -1.48%
U.S. M3 reported July 9, 2010 (Month of June, Y.O.Y.)
No Official Report / - 5.91%
The overarching challenge reflected in the aforementioned Real Numbers is that the Economy is not recovering, but rather bottom-bouncing.
This bottom-bouncing is reflected in the Negative Real GDP and M3 numbers which do not bode well for Real Recovery any time soon.
So we are thus impelled to ask whether there are any Categories of Investments, other than Gold and Silver, which offer the opportunity to Beat Inflation and Make a profit with Reasonable Risk, given the aforementioned challenges.
The answer is yes and we designate this Category as the #3 Opportunity.
The #3 Category is High-Yield Securities which meet certain criteria. Of course as “Paper”, such Securities are not without risk. (See “Opportunities To Profitably Escape Paper “Wealth” in 2010” (03/12/10) in the ‘Articles by Deepcaster’ Cache at www.deepcaster.com).
But if one Selects those with high yields (i.e. above the inflation rate) and appreciation Potential (or, at least, those resistant to depreciation) one has a chance of making a Real Profit Notwithstanding ongoing Substantial Real Consumer Price Inflation, the ongoing Equities Bear Market, and Declining Economy.
Deepcaster has recently Selected four such Securities with recent yields of 15.6%, 26%, 18.5% and 10.6% listed in his Alert: “NEW HIGH YIELD PORTFOLIO: 15.6%, 26%, 18.5% & 10.6% Recent Yields” for the week ending July 23, 2010 in the ‘Alerts Cache’ at www.deepcaster.com.
Of course, as these Securities Prices vary, so too do yields. Indeed, regarding selecting and managing Investments in Categories #1, #2, and #3 (and regarding selecting and managing other investments as well), it is important to adopt Selection Criteria and a Strategy which are appropriate to the realities of today’s Markets.
These should include
•Taking Account of overt and covert Cartel* Interventions; that is take account of The Interventionals as well as the Fundamentals and Technicals.
See Deepcaster's articles: “Profit & Protection from Cartel Intervention” (12/23/2009) and “Gain from the Cartel Game Plan” (9/04/2009) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com.
IMPORTANT NOTE: As indicated in the referenced Articles, much of the post-March 9, 2009 Equities Rally has been Cartel-generated.
•Making decisions based on Real Data, such as that provided by shadowstats.com (see above), gata.org and deepcaster.com, not on Bogus Official Statistics. See Deepcaster's articles: "Opportunities to Profitably Escape Paper "Wealth" in 2010" (3/12/10) and “Surmounting Deception, Distortion & Intervention” (7/17/2009) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com.
•Investing in Gold and Silver (and other key Strategic Commodities), BUT, according to a Strategy designed to minimize the Effects of periodic Cartel Price Suppressions of Gold and Silver (and key Equities Sectors and Commodities), and, indeed, to Profit. Deepcaster has designed such a Strategy described in the aforementioned articles.
•Implement an Investment and Personal Protection Strategy designed to cope with, surmount, and profit from The Cartel’s ‘End Game’. See Deepcaster's articles: “Surmounting The Armageddon Scenario & Cartel ‘End Game’” (2/26/2010), “Crunch Time for the Cartel“ (11/20/2009), “Surmounting the Cartels' 'End Game' Juggernaut“ (9/25/2009), and “Coping with Power Moves in the Cartel's 'End Game'” (4/24/2009) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com.
•Implement a Strategy Designed to Profitably Escape Paper ‘Wealth’. Deepcaster’s Strategy is described in “Opportunities to Profitably Escape Paper "Wealth" in 2010” (3/12/2010) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com.
•Become involved in Political action designed to blunt the Cartel’s Superpower-Threat and derail the Cartel’s ‘End Game’. See Deepcaster's articles: “Surmounting Cartel Advantages” (5/08/2009) and “Coping with the Superpower-Cartel Threat!” (1/30/2009) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com. Work to defeat The Cartel ‘End Game.’ Deepcaster has laid out the evidence regarding the Ominous Cartel “End Game” in “Coping with Power Moves in the Cartel's 'End Game'” (04/24/2009) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com. Clearly (and the recent U.S. Dollar bounce) The Cartel is sacrificing the U.S. Dollar over the long-term to prop up Favored International Financial Institutions and to maintain its power. But this sacrifice cannot continue forever. See Deepcaster’s July 2008 Letter in the ‘Latest Letter’ Archives at www.deepcaster.com.
•Eschew a Buy and Hold Strategy. As the past decade has shown, implementing a ‘Buy & Hold’ Strategy with Equities-in-General is a losing game.
•Develop an Investment and Trading Strategy designed to address all of the above. See Deepcaster's articles: “Avoiding Wealth Confiscation... With Profit!” (2/05/2010), “Profiting in "the whipsaw year" 2010” (1/08/2010), “Middle Class Outrage, Solutions, & The Markets” (12/11/2009), and “Protect and Profit Before the Coming Storm” (11/13/2009) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com.
In sum, the Key to achieving Profit and Protection via our Primary #1, #2 and #3 investments (and others as well) is a Strategy: Successful Investors must become Long-Term Position Traders, with their trading choices informed by the Interventionals, as well as the Fundamentals and Technicals. Moreover, engaging in the Actions suggested above can help prevent The Cartel’s obtaining Superpower status, and aid in achieving Wealth Protection and Profits as well.
Best regards,
Deepcaster
July 22, 2010
